situational analysis

a. cultural context

Our overall campaign stems from the “clean girl aesthetic” trend that first became popular on Tik Tok in early 2022 and has remained a trend ever since. The stereotypical clean girl aesthetic requires one to be at their best from head to toe, without looking like they spent any time or effort to get there. The overall look is “fresh, effortless, and natural – but, in reality, is none of these things” (Resnik).

Our primary research affirms how widespread the knowledge and influence of this aesthetic truly are. 90% of our respondents in our primary research have heard of the clean girl trend before. Our research also revealed that many people tend to have a limited vision of what a clear girl is and should look like. Many respondents echoed similar ways of describing what a clean girl was and said things like “they have no acne, no pores, and absolutely perfectly clear skin”, “they are usually white and female, think Hailey Bieber or Kendall Jenner”, and “they go for the no-makeup makeup look.”

Secondary research echoes the limited and problematic nature of this trend as “these standards seemingly uphold hierarchical beauty norms that are often unattainable, expensive, racist, texturist, or fatphobic” (Randall).

Given the type of minimal makeup products Tower 28 creates, and the company’s values, our team thought this would be a perfect opportunity to tackle the clean girl stereotype and try to expand people’s vision when it comes to what actually defines a “clean girl” and the “clean girl aesthetic.”

b. Industry analysis

Clean beauty is defined as “products that favor natural ingredients yet often incorporate synthetics that have been deemed safe for people and the planet” (ElBoghdady). Today’s current social and cultural wellness movement has further catalyzed consumers’ needs and demand for clean beauty products as more consumers care about what they put into their bodies and what they put onto their skin.

According to a 2022 report by Market Statsville Group, the clean beauty market is expected to experience rampant growth of $11,501.4 million USD, reaching a market size of $18,058.6 million USD by 2030 (Ahirwar, 2022). It has become an extremely lucrative market in which indie and big-name beauty brands have partaken in.

Porter’s Five Forces

To further analyze the competitive intensity and attractiveness of the clean beauty industry profitability-wise as it stands today, we have used Porter’s Five Forces model.

Threat of New Entrants: Medium

• There are low barriers to entry regulationwise as the beauty industry is severely underregulated.

• High capital requirements.

• High economies of scale from major existing players.

• Gaining access to distribution channels and retaliation by incumbents is a moderate barrier to entry.

Industry Rivalry - High

• Large number of competitors & many have established a strong brand presence.

• High exit barriers.

• Low product differentiation.

Buyer Power - Medium / High

• Low switching costs.

• Many buyers.

• Price sensitive.

• Low product differentiation.

Supplier Power - Low / Medium

• Many ingredient manufacturers and raw material suppliers.

• Low differentiation of inputs.

Threat of Substitution - Low / Medium

• The main substitutes for clean beauty products are home remedies & traditional beauty products that do not use completely natural or “clean” ingredients.

• Low switching costs.

• These substitutes usually offer a low performance-price mix. Consumers willingness to pay for high quality, clean, natural beauty products is relatively high.

Based on the analysis of the clean beauty industry along with the forecasted projections of its market size, it is apparent that the clean beauty market is extremely difficult to penetrate. The market is highly saturated and contains many major players thus breeding intense competition in the industry. Therefore, finding ways to break through the clutter of this growing industry is integral to Tower 28’s survival as a brand.

c. coMPetitor analysis

Kosas: Los Angeles-based clean beauty brand that emphasizes the importance of skincare and a no-makeup makeup look for any minimalist or clean-beauty enthusiast.

• Strengths: Has a strong company mission and goes above and beyond pushing clean beauty formulas. Aesthetically pleasing and targeted towards newer generations

• Weaknesses: Lacking brand awareness (nationally & more globally), a smaller cosmetics brand & is not necessarily consumers’ first choice.

Glossier: New York-based skincare and beauty brand designed for the perfect glowy, dewy no-makeup makeup look.

• Strengths: Has a strong brand identity being minimal & simple. Clearly understands millennial/gen-z trends & needs, always has a want and demand from consumers.

• Weaknesses: Only two permanent locations in NY & LA. “Overpricing” between products.

Rare Beauty: A beauty brand made to feel good in without hiding what makes you unique. Rare beauty takes a different approach to makeup and accepts one’s imperfections instead of masking them.

• Strengths: Selena Gomez is the founder of the brand. As a person who once had the most followers on Instagram, she already has a large following. She was quickly able to acquire an immense audience and gain loyal customers.

• Weaknesses: Intense competition with Fenty, Beauty-another celebrityendorsed beauty brand.

Tower 28: Beyond just clean ingredients, Tower 28 is the 1st and ONLY beauty brand to 100% follow the National Eczema Association’s Ingredient Guidelines –making their beauty product available to everyone.

• Strengths: Strong brand identity and mission, very inclusive and has a defined target market.

• Weaknesses: Little brand awareness, fairly new brand in a heavily saturated beauty industry. Not in many locations except select Sephora stores, mainly direct to consumer.